The accounting records of Wall’s China Shop reflected thefollowing balances as of January 1, 2018:
Cash$
18,900
Beginninginventory18,920(220 units @$86)Commonstock15,800Retainedearnings
22,020
The following five transactions occurred in 2018:
First purchase (cash) 120 units @ $88
Second purchase (cash) 200 units @ $96
Sales (all cash) 370 units @ $193
Paid $16,650 cash for salaries expense
Paid cash for income tax at the rate of 25 percent of incomebefore taxes
Required
Compute the cost of goods sold and ending inventory, assuming(1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-averagecost flow. Compute the income tax expense for each method.
Use a vertical model to show the 2018 income statement, balancesheet, and statement of
PayPal Gateway not configured
PayPal Gateway not configured